CORPORATE GOVERNANCE QUALITY AND FIRMS VALUATION: EVIDENCE FROM CONSUMERS GOOD SECTOR IN NIGERIA

This study investigates the relationship between corporate governance quality and firm valuation within the Nigerian consumer goods sector, focusing on governance attributes such as board independence, gender diversity, and experience. Using a 12-year dataset from 2012 to 2023, the study adopts a quantitative approach, employing random effects regression models to examine the impact of corporate governance on firm valuation, measured by Tobin's Q. The findings reveal a significant negative relationship between board independence and firm value, suggesting that increased independence may constrain strategic decision-making in the Nigerian context. Board gender diversity and experience show no statistically significant effect on firm valuation, while firm size negatively impacts valuation due to operational inefficiencies. In contrast, return on assets demonstrates a strong positive relationship with firm value, highlighting profitability as a critical driver of market valuation. The study concludes that traditional corporate governance practices may need to be tailored to the unique regulatory and market dynamics of Nigeria. Recommendations include adopting a balanced approach to board composition, enhancing female participation in leadership roles, and promoting governance frameworks aligned with local market realities to foster sustainable growth and investor confidence.